Reuters: Iran uses illegal "gambling network" to circumvent sanctions
London – Agencies: An extensive investigation conducted by Reuters has uncovered what experts describe as one of the world’s largest illegal gambling networks, which used cryptocurrencies to transfer at least $4 billion in a scheme believed to have helped Iran circumvent Western economic sanctions, amid allegations of direct links to the Central Bank of Iran and the Islamic Revolutionary Guard Corps (IRGC). According to the investigation, the network centers on an unlicensed digital currency company called “Shelbit.” Blockchain data reviewed by Reuters showed that the company has managed transactions worth at least $4 billion since May 2024, using a wide network of Persian-language gambling websites as a channel to move funds abroad.
The investigation revealed that “Shelbit” dealt directly with the Central Bank of Iran, as well as digital wallets linked to the IRGC. It also conducted transactions with the Iranian platform “Nobitex,” which the United States had previously sanctioned following a prior Reuters investigation that exposed its ties to the Iranian government. Data further showed that at least $676 million in cryptocurrency transferred from addresses linked to “Shelbit” to the global Binance platform since May 2024, including approximately $540 million transferred even after Dubai authorities fined the company for operating without a license.
Specialized cryptocurrency tracking investigators stated that part of the funds circulating through the network originated from digital currency mining operations inside Iran, a method Tehran has relied on since 2019 to obtain foreign currency and mitigate the impact of U.S. and international sanctions. The investigation also cited a letter previously sent by U.S. Senators Elizabeth Warren and Angus King to the administration of former U.S. President Joe Biden, in which they asserted that the Central Bank of Iran uses locally mined digital currencies in global markets.
The investigation concluded that the IRGC not only benefited from the gambling sector but also established control over it in recent years, leveraging its connections to Iran’s financial infrastructure. Reuters quoted former Iranian officials and informed sources as saying the IRGC viewed electronic gambling as a new financial source and gradually took over the sector in cooperation with domestic financial institutions.
John Voitchik, a former researcher at Infoblox, confirmed that the network represents “the largest Iranian illegal gambling network discovered to date, and one of the largest in the world,” adding that it is also among the most significant Iranian sanctions evasion schemes uncovered in recent years. The investigation indicates that the network includes more than 2,000 Persian-language gambling websites, promoted by several well-known Iranian influencers on social media, some of whom are linked to influential figures within Iran. These influencers showcase lavish lifestyles, luxury cars, and expensive watches to attract millions of followers.
